Year 3 · Applied Finance · Investment Banking
Investment Banking
Understand how investment banks advise companies on M&A, capital raising and strategic transactions, from pitch and valuation through diligence, modeling, negotiation and execution.
LEARNING OBJECTIVES
What you should be able to explain after this lesson
01
Explain what investment banks do and how coverage and product teams work together.
02
Understand the end-to-end M&A and capital-raising process.
03
Apply DCF, trading comparables and precedent transactions in a deal context.
04
Understand purchase price, synergies, financing and accretion/dilution.
05
Recognize the purpose of pitchbooks, CIMs, management presentations, data rooms and process letters.
06
Answer common investment-banking interview questions with a clear technical framework.
CONCEPT MAPFrom client mandate to transaction close
Investment banking is advisory plus execution
CORE FACTS · SAME IN EVERY MODE
Investment banks advise companies, sponsors and governments on M&A, capital raising and strategic transactions.
Coverage teams focus on industries or client relationships; product teams specialize in transaction types such as M&A, ECM, DCM or leveraged finance.
Advisory work combines financial analysis, process management, negotiation support and client communication.
Junior bankers spend substantial time on analysis, materials, models and execution details.
BeginnerTeaching style changes, knowledge does not.
An investment banker helps a company make major financial decisions such as buying another company, selling a business or raising money from investors.
COMPARISON
Coverage vs product teams
| Team | Primary focus | Examples |
|---|---|---|
| Coverage | Industry and client relationships | Technology, Healthcare, Industrials |
| Product | Transaction expertise | M&A, ECM, DCM, Leveraged Finance |
PROFESSIONAL VOCABULARYMandate / mandat Origination / origination Execution / exécution
Formal appointment of a bank to advise or execute a transaction.
Winning new client business and transaction mandates.
The analytical and process work required to complete a transaction.